Don't be 'thorn in the flesh' of state-owned firms, minister warns private sector

Source

Jakarta Post - February 26, 2020

Jakarta – State-Owned Enterprises (SOE) Minister Erick Thohir said the government was happy for private firms to work with state-owned companies in tapping the country's growing economic potential.

He warned, however, that the private companies should have good intentions in such partnerships rather than become a "thorn in the flesh" of state-owned companies.

"Private companies are welcome to partner with SOEs, but with good deeds. Don't trick the SOEs, because many friends from the private sector often try to outsmart state firms," he was quoted by kompas.com as saying on Wednesday.

Erick said private businesspeople often colluded with insiders of SOEs to get big projects. "Don't try to get people [into certain positions] just to eat away at SOE assets, "said Erick, the former chief of Italian soccer club Inter Milan.

Collusion between owners of private companies and executives of state-owned companies has become common practice in the country as private companies try to win lucrative projects from SOEs.

Some members of the House of Representatives and senior government officials have been jailed for involvement in corruption at SOEs. They were used to lobby key people at the SOEs to award big projects to their cronies. (hen)

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